UBI Banca Group

Action undertaken on the branch network of the Group
At the same time as it introduced the new “hour glass” distribution model in 2011, the UBI
Banca Group also conducted a gradual and progressive rationalisation and reorganisation of
its geographical market coverage, which followed on from action that accompanied and
followed the branch switching operations carried out in January 2010.
Action taken on the Group branch network in Italy in the 2011
Opening of: Transformation Closures of:
Transformation of Transformation of
of treasury
branches into minibranches
branches
mini-branches into
branches mini-branches branches into branches mini-branches
mini-branches
Banca Popolare di Bergamo Spa 1 1 - 3 6 2 1
Banco di Brescia Spa - 2 - - - - -
Banca Popolare Commercio e Industria Spa - 1 - - - - -
Banca Regionale Europea Spa 3 2 - 2 3 1 -
Banca Popolare di Ancona Spa 1 1 4 6 10 9 -
Banca Carime Spa 1 - - - 1 - -
Banca di Valle Camonica Spa - - 2 - - - -
Banco di San Giorgio Spa 1 - - - 1 1 -
UBI Banca Private Investment Spa - - - 5 - - -
TOTAL 7 7 6 16 21 13 1
In the spring of 2011, the Parent and the network banks involved approved a package of
measures designed to eliminate geographical overlap between branches and to improve
efficiency in customer relationships. These actions, which involved Banca Popolare di
Bergamo, Banca Regionale Europea, Banca Popolare di Ancona and UBI Banca Lombarda
Private Investment, took effect from 18 th April 2011 and can be summarised as follows:
• the closure of 16 branches and 12 mini-branches;
• 13 small branches transformed into mini-branches and one mini-branch into a branch.
This mass operation was reinforced by further closures of mini-branches performed by some
banks during the year.
The Group did not abandon internal growth, but opened 13 new branches 5 and transformed
six units formerly operated as “treasury” branches into mini-branches.
Changes to the distribution structure were also made in the first half of the year with the
introduction of new “head branches” and “group branches” 6 and the consequent creation of a
level of co-ordination between retail units, based on head branches required to co-ordinate one
or more grouped branches. Although to differing degrees of implementation, the process
involved a total of 552 units (391 grouped branches and 161 head branches) belonging to four
network banks (Banco di Brescia, Banca Carime, Banca di Valle Camonica and Banca
Regionale Europea)
The further worsening of the economic environment that occurred in the second half of the
year, which was particularly severe for the banking sector, required an even more heavily
weighted assessment across the entire banking sector of the “cost-to-serve” customers in
branches and of operations to implement business plans already formulated.
After the end of the year, the UBI Banca Group therefore announced and carried out new
initiatives, effective from 27 th February 2012, which involved almost all the network banks,
designed to further streamline geographical market coverage in areas where markets are
5 The figure does not include the transfer between Group banks of a mini-branch, which was closed and then reopened, which is
included among the 2011 changes reported in the table.
6 Grouped branches have a manager and are independent from accounting, credit (approval of credit authorisations and unauthorised
overdrafts) and commercial (authorisations and powers on interest rates, conditions and repayments) viewpoints. Head branches are
larger in size and have greater approval powers on commercial and credit matters and they are more structured (because all
commercial roles are present). They are therefore able to act as a point of reference in local areas and to support the operations of
grouped branches.
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